EGP/USD Went Down to Six-Year Low on Capital Outflow

[forexnewsguy]

Some of local banks in Egypt opened again on Jan.6,2011, and forex trading restarted.

The forex rate of US dollar versus Egypt pound went down to LE 5.951, which hit the six-year record low level. Egypt pound decreased sharply as the investors worried about the current situation in Egypt and as the protect movement had bad influence on the economy.

According to the report, Egypt would have about 8.0 billions dollars capital outflow as the result of the volatile situation. However, Egyptian government had enough reserve fund and broad experience to go through the bad times. Faruk, president from the Central Bank of Egypt, said that they totally had 36 billion dollars reserve to pay for nine and a half months of imports.

The analysts pointed out that the import prices would rise further if Egypt pound continued to drop in the forex market.

BNP PARIBAS considered that the Central Bank of Egypt would hold a meeting on interest rate this month and raise 100 basis points to interest rate to restrain inflation. Central Bank of Egypt kept interest rate unchanged on the monetary policy meeting. Central Bank of Egypt also said that it would take measures to restrain inflation at any time.

Edited by Kayla

[forexnewsguy]

Ikon forex “The forex price of EUR/USD fell from the highest point of this trading session on Thursday (December 2), because it is expected that the decision of the European Central bank on the interest rate would not be capable of changing the weak state of EUR in the market.

Societe Generale SA said on Thursday (December 2) no matter whether European Central Bank would hold the currency policy meeting later in the forex market and declare the specific measurements to restrict further spread of European sovereign debt crisis, the investors would continue to sell out EUR in the market.

Forex strategist Kit Juckes said that if the European Central Bank does not declare specific measurements to restrict further spread of the crisis, then the panic emotions on the EU sovereign debt crisis would be temporarily smoothed, but this panic emotions would come to the forex market again.

But it is hard to say this would be for sure, because under the so called quantitative easing plan to buy in national bond did do some good for EUR in the forex market, and the quantitative easing policy might be another reason for the forex investors to sell out EUR in the forex market.

Forex news in Ikon Group.

Edited by Laura.

[forexnewsguy]

Ikon Forex “The forex price of USD/CHF got a rebound sharply early in European forex market on Wednesday (December 1) and reached the highest point for ten weeks in the forex market at 1.0065; and forex price of USD against other non-USD currencies went weak but had not affected the strong performance of USD/CHF in the forex market, because CHF suffered great pressure at the cross trading session.

Some forex analysts pointed out the strong performance of the forex price of USD/CHF had nothing to do with strong USD in the market, and the major reason was because of the weak performance of CHF in the cross trading session, especially the sharp rebound of EUR/CHF in this trading session bring great pressure to the whole forex session for CHF in the market. Early in the European forex market the forex price of EUR/CHF got a sharp rebound and made a new high record at 1.3162 in this forex trading day.

Forex news in Ikon Group.

Edited by Laura.